Government Operations:

Major Issues Facing a New Congress and a New Administration

T-OCG-93-1: Published: Jan 8, 1993. Publicly Released: Jan 8, 1993.

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GAO discussed the series of reports concerning the major issues facing the new Congress and the new President. GAO noted that: (1) important issues included the budget deficit, investment, and long-term economic growth; (2) because of defense budget reductions and changing world events, there is a $150 billion gap between Department of Defense planned projects and budgetary resources; (3) escalating health care costs have created a crisis in funding for many social programs and reforms, as well as long-term strategies to contain costs; (4) education and training services are highly fragmented and reform is needed to help students make the transition from school to work, provide employment and training assistance to economically disadvantaged workers, and assist dislocated workers; (5) investment is needed in the government's infrastructure, particularly in the areas of surface transportation, air traffic control and airline competition, and nuclear and nonnuclear energy; (6) a sound financial system and mutually beneficial international trade are essential to the national economy's stability and productivity; and (7) other important issues include strengthening social programs, strengthening core functions of government, changing government management, clarifying accountability and creating a results-oriented environment, having access to reliable financial and program data, emphasizing a long-term mission, and reforming the budget process and agency structures.

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